Japan-based gaming technology and services provider company Konami’s q3 revenues have slumped. The gaming service provider posted a 0.9% decrease in revenue to ¥121.1 billion.
Konami also reported a drop of 16.4% drop in operating profit to ¥20.9 billion for the six months to 30 September 2019.
IAG reports that Konami’s gambling arm enjoyed a 16.2% year-on-year increase in revenue for the period to ¥14.9 billion, with segment profit also up 4.1% to ¥1.7 billion.
The growth in revenue from the company’s gambling arm has been attributed to “worldwide development, mainly in Europe, and opening of new casino facilities and integrated resorts (IR) which include casinos.”
Konami is also developing a mega esports centre in the capital city Tokyo. The upcoming e-sports facility will be a big 12 story stadium featuring hardware shops, e-sports products.
The esports market in Japan grew significantly in 2018. According to a national e-sports survey, the Japanese e-sports market stands at USD 42.3m which is over 13 times more than what it was in 2017.
The sudden and significant growth of the market is due to relaxed legislation which now exempts e-sports from falling under the jurisdiction of gambling regulations. Also, the maximum prize money of an event, which was earlier capped at ¥100,000 ($880), is now not restricted.